PCP – lose job

What happens if during the term of a PCP my circumstances change and am unable to make the payments, ie lose job.

The same process would be followed as would be the case if you took finance from a dealer. Like any other situation where people borrow money, with PCP a person enters into a financial commitment, for a fixed term, with a finance provider. In accordance with the agreement, the finance provider will expect to be paid on the due date every month. If someone fails to meet their payments then that is a breach of the agreement which can lead to big ramifications. If it is just a short term delay then a conversation with the finance company informing them of such is very important.

If you lose your job, then payments will still need to be met. If you do not meet this commitment you will enter into arrears (like a late payment on your credit card) and your personal credit file will be affected. If you fail to correct missed payments within a short period then eventually the finance company will repossess the vehicle and they will look to sell the vehicle at auction. In the vent that there is a shortfall between what the finance company obtain at the auction and what is owed on the vehicle then you will be liable for that shortfall.